ID :
19442
Sun, 09/14/2008 - 08:06
Auther :
Shortlink :
http://m.oananews.org//node/19442
The shortlink copeid
British tourism industry plunged into chaos
London, Sept 13 (PTI) Britain's tourism industry was plunged into chaos on Saturday as X.L., the country's third-largest travel firm collapsed, leaving more than 85,000 people stranded in foreign resorts and cities.
Phil Wyatt, the chief executive and founder of X.L., blamed the airline's collapse first on soaring oil prices -which have swelled its operating costs by U.S.D. 82 million this year - and then a rising dollar, which had wiped out the benefits of a fall of more than 30 percent in the oil price since July 11.
He said it was the grounding by British Airports
Authority (B.A.A) on Thursday of one of its aircraft amid
concerns about payment that forced the company to admit defeat
and call off rescue talks.
As the Civil Aviation Authority struggled to get them
home, the stranded passengers, some airlines were facing
demands for immediate payment for fuel and airport services
amid fears they could run out of cash.
According to a report in The Times, Barclays bank
called in its loans to X.L. on August 14, Administrators were
finally appointed early Friday.
Barclays, which is owed about 10 million pounds by
X.L., demanded more than 2 million pounds in immediate payment
amid mounting concerns about its solvency, the report said.
Willie Walsh, chief executive of British Airways,
which planned to cut 1,400 senior management jobs to save 170
million pounds, said that there were a lot of "weak" airlines
struggling to remain in business.
"We have seen 30 (airlines) worldwide go," he said.
PTI HSR
AMT
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Phil Wyatt, the chief executive and founder of X.L., blamed the airline's collapse first on soaring oil prices -which have swelled its operating costs by U.S.D. 82 million this year - and then a rising dollar, which had wiped out the benefits of a fall of more than 30 percent in the oil price since July 11.
He said it was the grounding by British Airports
Authority (B.A.A) on Thursday of one of its aircraft amid
concerns about payment that forced the company to admit defeat
and call off rescue talks.
As the Civil Aviation Authority struggled to get them
home, the stranded passengers, some airlines were facing
demands for immediate payment for fuel and airport services
amid fears they could run out of cash.
According to a report in The Times, Barclays bank
called in its loans to X.L. on August 14, Administrators were
finally appointed early Friday.
Barclays, which is owed about 10 million pounds by
X.L., demanded more than 2 million pounds in immediate payment
amid mounting concerns about its solvency, the report said.
Willie Walsh, chief executive of British Airways,
which planned to cut 1,400 senior management jobs to save 170
million pounds, said that there were a lot of "weak" airlines
struggling to remain in business.
"We have seen 30 (airlines) worldwide go," he said.
PTI HSR
AMT
NNNN
The information contained in this electronic message and any attachments to this
message are intended for the exclusive use of the addressee(s) and may contain
proprietary, confidential or privileged information. If you are not the intended
recipient, you should not disseminate, distribute or copy this e-mail. Please notify
the sender immediately and destroy all copies of this message and any attachments
contained in it.
